General Motors declared on Tuesday that it is committing $888 million to its Tonawanda propulsion assembly facility in New York to manufacture the next-generation V-8 engine. The company stated that this marks its most significant investment in an engine plant to date and represents the latest shift in its approach to electric vehicle production.
The investment in Tonawanda Propulsion will fund upgrades, including new machinery, equipment, tools, and facility renovations, as the plant prepares to begin production of the next-generation V-8 engines in 2027.
GM’s announcement represents its most recent adjustment in production, frequently attributing such shifts to evolving market conditions.
GM earlier revealed a $300 million investment to upgrade Tonawanda Propulsion for the production of electric vehicle drive units.
“GM’s Buffalo plant has been in operation for 87 years and is continuing to innovate the engines we build there to make them more fuel efficient and higher performing, which will help us deliver world-class trucks and SUVs to our customers for years to come,” GM CEO Mary Barra said.
Beyond New York, GM manufactures small block V-8 engines for its full-size trucks and SUVs at two additional sites—Flint, Michigan, and Toluca, Mexico.
In a news release highlighting the investment, New York Governor Kathy Hochul emphasized that the project will help sustain 870 jobs at Tonawanda Propulsion, including 177 positions considered at risk. To encourage investment commitments, the state intends to offer up to $16.96 million in tax credits.
Tonawanda is the second General Motors propulsion facility to produce sixth-generation V-8 engines. In 2023, the company invested an additional $500 million to upgrade its Flint Engine plant for production. According to GM, these new engines will deliver enhanced performance compared to current models while improving fuel efficiency and lowering emissions.
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